FINANCES & TAX

FINANCE AND TAXATION*

*State law reference(s)--Taxation, V.T.C.A., Tax Code § 1.01 et seq.; financial matters, V.T.C.A., Local Government Code § 101.001 et seq.

Art. I In General, §§ 6-1--6-25
            Sec. 6-1.          Fiscal year.
            Sec. 6-2.          Taxation of property forwarded out of state within one
                                      hundred seventy-five days of acquisition.
            Secs. 6-3--6-25.          Reserved.

Art. II Ad Valorem Taxes, §§ 6-26--6-75
            Div. 1. Generally, §§ 6-26--6-45
                        Sec. 6-26.        Penalty on delinquent taxes.
                        Secs. 6-27--6-45.        Reserved.
            Div. 2. Exemptions, §§ 6-46--6-75
                        Sec. 6-46.        Elderly persons.
                        Sec. 6-47.        Disabled persons.
                        Secs. 6-48--6-75.        Reserved.

Art. III Sales and Use Tax, §§ 6-76--6-100
Sec. 6-76. Retention of taxes.
Secs. 6-77--6-100. Reserved.

Art. IV Occupation Tax, §§ 6-101--6-125
Sec. 6-101. Levied.
Secs. 6-102--6-125. Reserved.

Art. VI Hotel Occupancy Tax, §§ 6-160--6-169
            Sec. 6-160.      Definitions.
            Sec. 6-161.      Tax levied; amount; exemptions.
            Sec. 6-162.      Collection of tax.
            Sec. 6-163.      Quarterly reports to tax assessor-collector.
            Sec. 6-164.      Rules and regulations of tax assessor-collector; access to
                                       books and records
            Sec. 6-165.      Penalties.
            Sec. 6-166.      Additional penalties.
            Sec. 6-167.      Additional authorization to bring suit.
            Sec. 6-168.      Use of revenue derived from levy of hotel occupancy tax.
            Sec. 6-169.      Administrative requirements; accountability; keeping of
                                      records.

TABLE OF CONTENTS
TOP OF PAGE

ARTICLE I. IN GENERAL

Sec. 6-1. Fiscal year.

The fiscal year for the city is hereby established as beginning on October 1 of each calendar year and terminating on September 30 of the next succeeding calendar year.

(Code 1977, § 6-1)

Sec. 6-2. Taxation of property forwarded out of state within
one hundred seventy-five days of acquisition.

All of the property described in the Texas Constitution, Article VIII, section 1-j, shall be fully taxable in the city, beginning January 1, 1990.

(Ord. No. 389, § 1, 12-15-89)

Editor's note--Ordinance No. 389, adopted Dec. 15, 1989, did not specifically amend the Code; hence, inclusion of § 1 as § 6-2 was at the discretion of the editor.

Secs. 6-3--6-25. Reserved.

ARTICLE II. AD VALOREM TAXES
DIVISION 1. GENERALLY
Sec. 6-26. Penalty on delinquent taxes.

All ad valorem taxes payable to the city which remain delinquent on July first of the year in which they become delinquent shall incur an additional penalty to defray costs of collection in each year with respect to which the city has contracted with an attorney pursuant to V.T.C.A., Tax Code § 6.30. The amount of the penalty shall be equal to fifteen (15) percent of the amount of taxes, penalty and interest due.

(Ord. No. 315, § 1, 4-26-82; Ord. No. 377, § 1, 4-11-88)

State law reference(s)--Attorneys representing taxing units, compensation, V.T.C.A., Tax Code § 6.30; authority to adopt fee for collection, V.T.C.A., Tax Code § 33.07.

Secs. 6-27--6-45. Reserved.

DIVISION 2. EXEMPTIONS*

*State law reference(s)--Residence homestead exemptions, V.T.C.A., Tax Code § 11.13.

Sec. 6-46.        Elderly persons.

(a)        From and after January 1, 1982, forty thousand dollars ($40,000.00) of assessed value of residence homesteads of persons who have attained the age of sixty-five (65) years or older before the end of the year shall be exempted from taxation for all city purposes; however, where the ad valorem tax has heretofore been pledged for the payment of any debt, the taxing officers of the city shall have authority to continue to levy and collect the tax against the homestead property at the same rate as the tax so pledged until the debt is discharged, if cessation of the levy would impair the obligations of the contract by which such debt was incurred and created.

(b)        In order to secure the benefits of the exemption, the owner shall, on or before May first, file with the chief appraiser a completed exemption application on the state property tax board prescribed form. Once allowed, the exemption need not be claimed in subsequent years. A person receiving this exemption shall notify the appraisal office in writing before May first after his entitlement to the exemption ends.

(Code 1977, § 6-16; Ord. No. 331, §§ 1, 2, 10-10-83)

Sec. 6-47. Disabled persons.

(a) From and after January 1, 1981, ten thousand dollars ($10,000.00) of the market value of residence homesteads of persons, married or unmarried, including those living alone, who are under a disability for the purposes of payment of disability insurance benefits under federal old age, survivors and disability insurance or its successors, shall be and is hereby exempted from all ad valorem taxes levied on or after such date by the city. Where the ad valorem taxes have heretofore been pledged for the payment of any debt, the taxing officers of the city shall have the authority to continue to levy and collect the tax against the homestead property at the same rate as the tax so pledged until the debt is discharged, if cessation of the levy would impair the obligations of the contract by which the debt was incurred and created.

(b) Joint or community owners may not each receive the same exemption provided by or pursuant to this section for the same residence homestead in the same year. An eligible disabled person who is sixty-five (65) or older may not receive both a disabled and an elderly residence homestead exemption, but may choose either.

(c) The administration of this section and of all homestead exemptions previously established by the City Council shall be governed by V.T.C.A., Tax Code § 11.41 et seq. as it now exists and as it may be amended from time to time.

(Ord. No. 299, §§ 1--3, 2-23-81)

Secs. 6-48--6-75. Reserved.

ARTICLE III. SALES AND USE TAX*

*Editor's note--The sales and use tax was adopted in a referendum held in 1969.

Cross reference(s)--Licenses, permits and business regulations, ch. 10.

Sales and use tax, V.T.C.A., Tax Code § 321.001 et seq.

Sec. 6-76. Retention of taxes.

The City hereby retains the taxes authorized by the local sales and use tax act, V.T.C.A., Tax Code § 321.001 et seq., on the receipts from the sale, production, distribution, lease, or rental of, and the use, storage, or other consumption of gas and electricity for residential use, as authorized by V.T.C.A., Tax Code § 321.105.

(Ord. No. 270, § 1, 2-26-79)

Secs. 6-77--6-100. Reserved.

TABLE OF CONTENTS
TOP OF PAGE

ARTICLE IV. OCCUPATION TAX*

*Cross reference(s)--Licenses, permits and business regulations, ch. 10.

State law reference(s)--Occupation tax authority, V.T.C.A., Tax Code § 101.008; occupation tax, V.T.C.A., Tax Code, § 302.101 et seq.

Sec. 6-101. Levied.

There is hereby levied, to the extent permitted by State law, and there shall be collected from every person pursuing any occupation taxed by the general laws of the state, an annual occupation tax of one-half the amounts levied by the state, which tax shall be paid annually in advance except where otherwise provided by state law, in which event the same may be paid as is provided by state law.

(Code 1977, § 6-6)

Secs. 6-102--6-125. Reserved.

TABLE OF CONTENTS
TOP OF PAGE

ARTICLE V. FINANCE*

*Cross reference(s)--City manager shall be budget officer and prepare and submit a budget to the City Council, § 2-250(7); service fees of the municipal court, § 2-392; rates, charges and billing procedures for utilities, § 19-146 et seq.

State law reference(s)--Financial matters, V.T.C.A., Local Government Code § 101.001 et seq.

DIVISION 1. GENERALLY

Secs. 6-126--6-140. Reserved.

DIVISION 2. PURCHASES AND CONTRACTS*

*State law reference(s)--Purchasing and contracting, V.T.C.A., Local Government Code § 252.001 et seq.

Sec. 6-141. Designation of purchasing agent.

The city manager, or in his absence or inability or refusal to act, the mayor, shall serve as the purchasing agent for the city with all the rights, powers, duties and obligations set forth herein.

(Ord. No. 338, § 1(a), 4-30-84)

Cross reference(s)--City manager, § 2-246 et seq.

Sec. 6-142. Purchases under twenty-five thousand
dollars.

The purchasing agent shall be and is hereby authorized to enter into any contract in behalf of the city calling for or requiring expenditure or payment in the amount of twenty-five thousand dollars ($25,000.00) or less out of any fund or funds of the city or imposing an obligation or liability of any nature or character upon the city without first submitting such proposed contract to competitive bids unless expressly directed to obtain competitive bids on the contract in question by formal action of the City Council.

(Code 1977, § 2-5; Ord. No. 338, § 1(b), 4-30-84)

Sec. 6-143. Competitive bids--When required.

It shall be the duty of the purchasing agent to obtain competitive bids in accordance herewith prior to entering into any contract calling for or requiring the expenditure or payment in an amount exceeding twenty-five thousand dollars ($25,000.00) out of any fund or funds of the city or imposing an obligation or liability of any nature or character upon the city to the extent the same is required by V.T.C.A., Local Government Code § 252.001 et seq. Notice of the time and place when and where such contract shall be let shall be published in the official newspaper of the city once a week for two (2) consecutive weeks prior to the time set for letting such contract, the date of the first publication to be at least fourteen (14) days prior to the date set for letting such contract. The contract shall be let to the lowest responsible bidder, to the extent required by State law.

(Ord. No. 338, § 1(c), 4-30-84)

State law reference(s)--Similar provision, V.T.C.A., Local Government Code § 252.041.

Sec. 6-144. Same--Procedures generally; bond.

(a) All bids shall be sealed and shall be opened in public and thereafter shall be subject to public inspection. The purchasing agent and/or the City Council shall have the right to reject any and all bids. If indicated in the notice for bids, the successful bidders may be required to furnish security conditioned upon the faithful performance of their contracts.

(b) If the contract is for the construction of public works, the successful bidder shall be required to give a good and sufficient bond in the full amount of the contract price, for faithful performance of such contract, executed by some surety company authorized to do business in this state in accordance with the provisions of Titles 5, 6, and 10 of the Texas Government Code. The city, in making any contract calling for or requiring the expenditure or payment of less than the amounts which may be required, from time to time, by State law, for performance and payment bonds, may, in lieu of the bond bond requirements, provide that in the contract that no money will be paid to the contractor until completion and acceptance of the work by the city.

(Ord. No. 338, § 1(d), 4-30-84)

State law reference(s)—Performance bond and a payment bond are required on certain public works contracts, section 2253.021 of the Texas Government Code.

Sec. 6-145. When competition unavailable.

It shall be the duty of the purchasing agent to give opportunity for competition on sales unless such competition is impossible or impracticable.

(Ord. No. 338, § 1(e), 4-30-84)

Sec. 6-146. Emergency contracts.

(a) The competitive bidding requirements set forth in sections 6-143 and 6-144 shall not apply to the expenditures which are exempt pursuant to V.T.C.A., Local Government Code § 252.022.

(b) Nothing contained herein is intended, nor shall it be construed, as waiving the necessity of notice in the instance of the issuance of time warrants as otherwise provided by law.

(c) In the event of a purchase pursuant to a public calamity under V.T.C.A., Local Government Code § 252.022(a)(1), the purchasing agent shall, within three (3) days thereafter, file with the city secretary a certificate indicating the nature of the justification for such purchase, together with an itemized accounting of all expenditures made thereunder.

(Code 1977, § 2-6; Ord. No. 338, § 2, 4-30-84)

State law reference(s)--Exemptions, V.T.C.A., Local Government Code § 252.022.

Sec. 6-147. Acquisition of real estate by purchase
or eminent domain.

Whenever the City Council determines to authorize the purchase of any real estate or rights or easements therein, it shall pass an ordinance containing a description of the real estate or rights or easements therein to be acquired, declaring its intention to acquire the same and that it deems the same necessary for municipal purposes, directing the city manager to ascertain the price and to negotiate for the purchase of the same, and to report to the City Council the price at which the purchase can be made. If the City Council approves the price reported by the city manager, it shall authorize him to make such purchase. If the City Council disapproves the price reported by the city manager, or if the manager reports that he is unable to obtain a price by negotiation, the City Council may direct the city attorney to institute a condemnation proceedings for the acquisition of such real estate, rights, or easements. In case a local assessment is to be levied for the whole or any part of the expense of the acquisition of such real estate, rights, or easements, the City Council shall proceed thereon as in the case of other local improvements, and may in the ordinance for the local improvement direct the acquisition as herein provided for real estate, rights, or easements necessary therefor.

(Code 1977, § 2-7)

Cross reference(s)--City property, § 2-416 et seq.

State law reference(s)--Eminent domain, V.T.C.A., Local Government Code § 251.001; purchase of real property exemption from competitive bid requirement, V.T.C.A., Local Government Code § 252.022.

Secs. 6-148--6-159. Reserved.

TABLE OF CONTENTS
TOP OF PAGE

ARTICLE VI. HOTEL OCCUPANCY TAX*

*Editor's note--The hotel occupancy tax authorized in Ord. No. 403, from which this article derives, shall become effective July 1, 1991, pursuant to § 3 of the ordinance.

Sec. 6-160. Definitions.

The following words, terms and phrases, when used in this article, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:

(a) Consideration. The cost of the room in a hotel only if the room is ordinarily used for sleeping, and not including the cost of any food served or personal services rendered to the occupant of such room not related to the cleaning and readying of such room for occupancy.

(b) Hotel. Any building or buildings in which the public may, for a consideration, obtain sleeping accommodations, including hotels, motels, tourist homes, houses or courts, lodging houses, inns, rooming houses, or other buildings where rooms are furnished for a consideration, but not including hospitals, sanitariums or nursing homes.

(c) Occupancy. The use or possession, or the right to the use or possession, of any room or rooms in a hotel if the room is one which is ordinarily used for sleeping and if the occupant is other than a permanent resident as hereinafter defined.

(d) Occupant. Anyone who, for a consideration, uses, possesses, or has a right to use or possess any room or rooms in a hotel under any lease, concession, permit, right of access, license contract or agreement, other than a permanent resident as hereinafter defined.

(e) Permanent resident. Any occupant who has or shall have the right to occupancy of any room or rooms in a hotel for at least thirty (30) consecutive days during the calendar year or preceding year.

(f) Person. Any individual, company, corporation or association owning, operating, managing or controlling any hotel.

(g) Quarterly period. The regular calendar quarters of the year, the first quarter being composed of the months of October, November and December; the second quarter being the months of January, February and March; the third quarter being the months of April, May and June; and the fourth quarter being the months of July, August and September.

(h) Tax assessor-collector. The tax assessor and collector of the City of West Columbia.

(Ord. No. 403, § 1, 5-13-91)

Sec. 6-161. Tax levied; amount; exemptions.

(a) There is hereby levied a tax of seven percent (7%) of the price paid for a room in a hotel on every person who, under a lease, concession, permit, right of access, license, contract, or agreement, pays for the use or possession or for the right to the use or possession of a room that is in a hotel, costs two dollars ($2.00) or more each day, and is ordinarily used for sleeping. The price of a room in a hotel does not include the cost of food served by the hotel and the cost of personal services performed by the hotel for the person except those services related to the cleaning and readying of the room for possession.

(b) Exceptions are as follows:

(1) No tax shall be imposed upon a permanent resident.

(2) No tax shall be imposed for federal or state employees traveling on official business.

(3) No tax shall be imposed for diplomatic personnel who present a tax exemption card issued by the United States Department of State.

(4) No tax shall be imposed for federal or state military personnel traveling on official military business. This exemption does not cover military staff on leave or between stations.

(Ord. No. 403, § 1, 5-13-91; Ord. No. 490, §1, 8/14/00, changed tax amount to 7%, paras. renumbered)

Sec. 6-162. Collection of tax.

(a) Every person owning, operating, managing or controlling any hotel shall collect the tax levied by this ordinance for the city.

(b) The hotel operator shall be entitled to one (1) percent of the hotel occupancy tax revenues collected as reimbursement for the operator's administrative costs for collecting the tax. However, as hereinbelow provided, this reimbursement may be forfeited at the discretion of the city if the hotel operator fails to timely pay over the tax or timely file a report as required by the city or file a false report with the city.

(Ord. No. 403, § 1, 5-13-91)

Sec. 6-163. Quarterly reports to tax assessor-collector.

On the last day of the month following each quarterly period, every person required to collect the tax imposed hereby shall file a report with the assessor-collector of taxes showing the price paid for all room occupancies in the preceding quarter, the amount of the tax collected on such occupancies, and any other information the assessor-collector may reasonably require. Such person shall pay the tax due on such occupancies at the time of filing such report. The report shall be in a form prescribed by the assessor-collector. The assessor-collector is hereby authorized and directed to do all such things necessary or convenient to carry out the terms of this article. The assessor-collector shall have the authority to request and receive within a reasonable time documentation for information contained in the report to the city by the hotel.

(Ord. No. 403, § 1, 5-13-91)

Sec. 6-164. Rules and regulations of tax assessor-collector;
access to books and records.

The assessor-collector shall have the power to make such rules and regulations as are reasonable and necessary to effectively collect the tax levied hereby, and shall upon reasonable notice have access to books and records necessary to enable him to determine the correctness of any report filed as required by this article, and the amount of taxes due under the provisions of this article.

(Ord. No. 403, § 1, 5-13-91)

Sec. 6-165. Penalties.

(a) If any person shall fail to file a report as required herein or shall file a false report or shall fail to pay to the tax assessor-collector the tax as imposed herein when the report or payment is due, he shall forfeit five (5) percent of the amount due as penalty, and after the first thirty (30) days, he shall forfeit an additional five (5) percent of such tax. However, such penalty shall never be less than one dollar ($1.00). Delinquent taxes shall draw interest at the rate of ten (10) percent per annum beginning sixty (60) days from the due date.

(b) Any person violating any of the provisions of this article, including hotel operators who fail to collect the tax, fail to file a return, file a false return, or who are delinquent in their tax payment, shall be guilty of a misdemeanor and shall, upon conviction, be fined in any sum not to exceed five hundred dollars ($500.00), and each twenty-four (24) hours of any such violation shall constitute a separate offense.

(Ord. No. 403, § 1, 5-13-91)

Sec. 6-166. Additional penalties.

The city is hereby authorized to take the following actions against any person required to collect the tax imposed hereby and pay the collection over to the city and who has failed to file a report, or filed a false report, or failed to pay the tax when due:

(a) Require the forfeiture of any revenue the city allowed the hotel operator to retain for its cost of collecting the tax;

(b) Bring suit against the hotel for noncompliance; and/or

(c) Bring suit against the hotel seeking any other remedies provided under Texas law.

Sec. 6-167. Additional authorization to bring suit.

The city attorney is hereby authorized to bring suit against any person required to collect the tax imposed hereby and required to pay the collection over to the city and who has failed to file a report, or filed a false report, or failed to pay the tax when due. Such suit may seek to collect such tax not paid or to enjoin such person from operating a hotel in the city until the tax is paid or the report is filed or both, as applicable and as provided in the injunction.

Sec. 6-168. Use of revenue derived from levy of hotel
occupancy tax.

(a) The revenue derived from any hotel occupancy tax imposed and levied by this article may be used only to promote tourism and the convention and hotel industry, and that use is limited to the following:

(1) The acquisition of sites for and the construction, improvement, enlarging, equipping, repairing, operation and maintenance of convention center facilities (as such is defined in V.A.T.S. Tax Code, section 351.001);

(2) The furnishing of facilities, personnel and materials for the registration of convention delegates or registrants;

(3) Advertising and conducting solicitations and promotional programs to attract tourists and convention delegates or registrants to the municipality or its vicinity;

(4) The encouragement, promotion, improvement, and application of the arts, including instrumental and vocal music, dance, drama, folk art, creative writing, architecture, design and allied fields, painting, sculpture, photography, graphic and craft arts, motion pictures, radio, television, tape and sound recording and other arts related to the presentation, performance, execution and exhibition of these major art forms; and

(5) Historical restoration and preservation projects or activities or advertising and conducting solicitations and promotional programs to encourage tourists and convention delegates to visit preserved historic sites or museums:

(A) Which are at or in the immediate vicinity of convention center facilities; or

(B) Which are located elsewhere in the municipality or its vicinity that would be frequented by tourists, convention delegates or other visitors to the municipality.

(b) Revenue derived from the hotel occupancy tax shall be expended only in a manner which directly enhances and promotes tourism and the convention and hotel industry as hereinbefore delineated. Such revenue shall not be used for the general revenue purposes of general governmental operations of the municipality which are not directly related to promoting the hotel and convention industry or tourism in the municipality.

(a) The City Council may, by contract, delegate to a person, including another governmental entity or a private organization, the management or supervision of programs and activities funded with revenue from the hotel occupancy tax. The City Council shall approve in writing in advance the annual budget of the entity to which it delegates those functions, and shall require the entity to make periodic reports to the City Council at least annually listing the expenditures made by the entity of revenue from the tax provided by the municipality.

(b) The entity must maintain the revenue provided by the municipality from the tax in a separate account established for that purpose and may not commingle that revenue with any other money or maintain it in any other account.

(c) The municipality may not delegate to any person or entity the management or supervision of its convention and visitors programs and activities funded with revenue from the hotel occupancy tax other than by contract as provided herein.

(d) The approval by the City Council of the annual budget of the entity to which these functions are delegated creates a fiduciary duty in the person or entity with respect to the revenue provided by the municipality to the person or entity under the contract.

(e) A person or entity with whom the municipality contracts to conduct authorized activities shall maintain complete and accurate financial records of each expenditure of hotel occupancy tax revenue made by the person or entity and, on request of the City Council or other person, shall make the records available for inspection and review.

(f) Hotel occupancy tax revenue may be spent for day-to-day operations, supplies, salaries, office rental, travel expenses, and other administrative costs only if those administrative costs are incurred directly in the promotion and servicing of expenditures hereinbefore authorized. The portion of the total administrative costs for activities for which hotel occupancy tax revenue may be used may not exceed the administrative costs actually incurred in conducting the authorized activities.

(g) Hotel occupancy tax revenue may not be spent for travel for a person to attend an event or conduct an activity the primary purpose of which is not directly related to the promotion of the person's job in an efficient and professional manner.